The UK Government will invest more than £100 million in fines and penalties collected from water companies into local environmental projects aimed at cleaning up the nation’s rivers, lakes, and seas.
These funds—levied since October 2023, along with future fines—will support local initiatives to combat pollution and improve water quality. Projects may include targeted efforts to address runoff, tackle sewage spills, and enhance water ecosystems.
When water companies breach environmental permits—such as releasing excessive pollution into waterways—this constitutes a criminal offence. Serious violations, including illegal sewage discharges, result in fines and, in some cases, criminal prosecution of company executives.
Under the leadership of Environment Secretary Steve Reed, a record 81 criminal investigations into water companies have been launched—a clear signal of increased enforcement.
“We inherited a broken water system with record levels of sewage being pumped into our waters,” said Secretary of State Steve Reed.
“But the era of profiting from failure is over. This Government will reinvest fines into local projects to clean up our rivers, lakes, and seas for good.”
As part of its Plan for Change, the Government has also initiated an independent regulatory review, led by Sir Jon Cunliffe, to reform oversight of the water sector and deliver a fairer system for customers and investors.